Ukraine is moving to implement a major expansion of defence spending in its 2026 state budget, building on a €90 billion EU support package designed to cover wartime financing needs through 2027.
Ukrainian Prime Minister Yuliia Svyrydenko said the government has prepared budget amendments that significantly increase resources for the security and defence sector, with funding enabled by the EU loan agreement.
The package is expected to deliver €45 billion in 2026, with the first tranche scheduled for June. Earlier government planning outlined that initial disbursements would prioritise domestic defence production and energy security, particularly drone manufacturing and protection of critical infrastructure.
Defence sector receives 1.56 trillion UAH allocation
In the revised budget, 1.56 trillion UAH is allocated to defence and security.
This includes 174.3 billion UAH for servicemembers’ salaries, 1.37 trillion UAH for weapons and military equipment development and procurement, and 14.6 billion UAH reserved for security and defence needs.
Additional resources are also directed toward modernising Ukraine’s defence production and scaling up domestic weapons manufacturing capacity.
The wider budget increase exceeds 2.2 trillion UAH, driven mainly by international financial assistance and reform-linked inflows.
Resilience and emergency funding expanded
Beyond defence spending, 40 billion UAH is allocated to regional resilience programmes, including energy system protection, winter preparation, and critical infrastructure maintenance.
Another 40 billion UAH will be placed in the reserve fund for emergency wartime needs.
EU package linked to defence priorities
On 26 April 2026, President Volodymyr Zelenskyy said Ukraine would prioritise drone production and energy infrastructure protection when the EU package was first outlined, noting that the initial funding would be directed toward domestic military technology and resilience needs.
The EU package forms part of a broader financial framework supporting Ukraine’s budget gap and long-term wartime resilience, following approval earlier this year after months of internal delays within the bloc.
Svyrydenko said the government will now work with parliament to secure approval of the amendments.
